Question
Which of the following is true about stocks? They do not fluctuate in value They always provide fixed returns They represent ownership in a company They are risk-free investments
Solution
4.1
(177 Votos)
Erika
Mestre · Tutor por 5 anos
Resposta
'They represent ownership in a company'
Explicação
## Step 1The problem presents four statements about stocks and asks which one is true. Let's analyze each statement one by one.## Step 2The first statement is "They do not fluctuate in value". This is not true because the value of stocks fluctuates based on market conditions, company performance, and investor sentiment.## Step 3The second statement is "They always provide fixed returns". This is also not true. The returns on stocks are not fixed; they can vary greatly depending on the performance of the company and the market.## Step 4The third statement is "They represent ownership in a company". This is true. When you buy a stock, you are essentially buying a piece of the company. This is known as equity.## Step 5The fourth statement is "They are risk-free investments". This is not true. Stocks are considered high-risk investments because their value can fluctuate greatly, and there is always a risk of losing the entire investment.